Buying Life Insurance for Senior Citizens

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  | Published: 26 October 2021

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Age of the applicant is directly proportional to the cost of the premium - thumb rule of life insurance. With progressing age number of options available get delimited, making it difficult for senior citizens to buy life insurance in UAE.

If you fall in the age bracket of below 70 and are in good health, then it’s comparatively easy to get the right life insurance.  It’s true that you’ll have to put in a bit more efforts but you will get the right insurance product in the end.

Depending upon your age and health status the insurance providers review and assess your application and decide whether a policy can be issued or not. Irrespective of your age group or health status, it is important to assess insurance products based on your needs and goals. Your family’s financial needs play a crucial role in choosing life insurance.

If you are feeling confused about choosing the right life insurance due to your age you’ve landed at the right place. We’ve put together a guide that will help you to select the perfect life insurance plan for senior citizens in the UAE. We will also shed light on the pros and cons of purchasing life insurance in the later stages of life and how can you save money on it.

Life Insurance for Applicants Above 70 Years

The process of underwriting while issuing life insurance is complex and involves different assessments based on age, health status, medical history, employment status, and family history of illnesses. The first and foremost factor that life insurance providers look for during the underwriting process is the age of the applicant.

For applicants over the age of 70, the options are limited and the ones available come with certain restrictions. The first one being a term of more than 20 years. This mainly because life insurance providers would not take the risk of issuing a policy to an applicant falling in a high risk age bracket.

Term insurance is the cheapest option and would serve your purpose if you are looking forward to opting for coverage for a term of 15 to 20 years. These plans are perfect if your objective of purchasing insurance is covering outstanding debts or replacing income after retirement.

However, if you are looking out for a plan that covers you for the entire life, then you might consider opting for a whole life insurance policy. These plans are guaranteed payouts and therefore are a bit more expensive than regular term insurance policies. With a whole of life insurance plan, you can pay for your funeral and burial expenses removing the element of dependency. It also acts as an income replacement for your family members and ensures that they continue to live the same lifestyle when you are not around to look after their financial needs.

Based on your age it might be a bit challenging to get to a life insurance plan easily but certainly, it is not impossible. All you need to do is put in some efforts and compare different providers and plans to filter the ones that meet your requirement and fit your budget at the same time.

Life Insurance for Applicants over 80

Getting a life insurance for applicants above 80 is quite difficult. Even if they qualify for a term life insurance plan the period for which the policy is issued will not be more than 10 years.

In such a situation it is advisable to go for a whole life insurance plan because it covers the policyholder for their entire life. Furthermore, the issuance of life insurance will also depend on the health status, pre-existing illness, and family history of illnesses. If you are healthy and have no medical issues it would be easier for you to get life insurance in UAE. However, if you have poor health or pre-existing illnesses it would be difficult for you to get a life cover.

If you are fairly healthy and have no history of medical illnesses you can opt for universal life insurance policies. If you have a medical history or any disease you can go for whole life insurance plans. However, if you are not healthy you can opt for term life insurance plan that will protect your loved ones against the strokes of uncertainties.

Wrapping it Up

The eligibility criteria and coverage benefits of life insurance for senior citizens vary from provider to provider. Before purchasing life insurance it is important to evaluate and compare different plans and choose the right one that fulfils your requirement and fits into your budget.